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Comparing two UL's, if all other pricing factors and relationships are the same, premium is linear in regard to price. Hence, option prices on higher priced stocks move more but the percentage is the same :)

That would most likely be true in other election cycles but it's hard to envision with the current slate of flawed Republican wannabes running. The 2012 election is likely to be who you don't want as president versus who you do.

If not raising the debt ceiling will have calamitous effects (as many suggest), why is the market shrugging it off? Is this like Y2K, much ado about nothing?

http://www.ivolatility.com/calc/?ticker=SPX

Wide spreads are an invitation for dumb money. If you fast finger your order and accidentally place a bad order, you are the dumb money. Wide spreads on 3 letter critters in the pre/post market often anb dumb money.

It's highly unlikely that you'll ever buy any wide spread options trading that far below parity.

I would (almost) never book a loss and carry a paper gain. The market has a perverse way of hurting that mentality. I'd sooner book gains and hold paper losses so reverses help not hurt. In this case, you have a 15 pt spread and if you bot it when AAPL was close to 345, you have a nice gain...

If IV of the near month is lower, it has dropped. If IV of the back months remains elevated, it's unchanged. If avg IV has dropped, it's lower. With all due respect, who cares? It's the IVs of the legs you're going to play with that determines the attractiveness of the strategy you're...

If time was the only variable that changed in a pricing equation, what else could you attribute that change to. The number of posters on ET? :) Theta isn't linear but from 200 days out until 80 days out it isn't far from it (it's accelerating verrrrry slowly). Avg the two and subtract the...

You guys need to request an ROI audit by atticus :D

No one can answer that accurately but if you're willing to put in the effort, you can. (A) Pick an UL. Determine the IV of the option sold (or use an arbitrary average for the UL). Extrapolate the cost of the protective/long leg strike. Determine the closing price of the UL. If held to...

It's equivalent to a vertical so the only concern is direction. With EK dropping, you have a "significant" gain on your options but a more significant loss on your stock. That's how collars work. IV change is fairly irrelevant because the extra bump you receive for the sold calls is...

1) Where it's filled is irrelevant. Price is the issue. 2) Yahhh, net price is the issue not component price. 3) Suppose you're trying to split the bid. Do you think a 2 legged position is easier to fill than a 4 legged position? Or vice versa? Or the same? I think 2 is more likely to...

I think that the # 1 reason why small traders lose is because they don't know WTF they're doing.

If you're trading multi-legged positions at a limit price better than the natural, fills will be somewhat harder to get on larger positions because more things have to line up to get that price. So condors and flies etc. may be tougher to fill than 2 legged verticals, diagonals, etc...

I don't follow this., You were selling deep ITM calls against your stock prior to ex-div? Whre was the profit potential if not exercised? Are you implying that the call didn't drop as much as the dividend?

Unless you're trading volatility, you're going to have to have some idea about direction... or lack thereof. If you never made money with stocks, writing options isn't likely to be the road to success.

The 35 puts should be close to worthless (5 ct asked). The 40 puts may trade for not much more than that. So buy the highest strike put that costs hardly anything and if the deal cracks, you hit the mini lottery. :)